Alibaba announced on Tuesday that it will split into six business groups, marking one of the most significant overhauls of a leading Chinese tech firm to date. Chairman and CEO Daniel Zhang said the restructuring will allow each separate business to pursue its own fundraising and public‑listing plans. The Hangzhou‑based company said the moves are intended to “unlock shareholder value and foster market competitiveness.”
Under the new arrangement, each of the six newly established units will be managed by its own CEO and board of directors. A key exception is the Taobao Tmall Commerce Group, the operator of one of China’s top online purchasing platforms, which will remain wholly owned by Alibaba Group.
In recent years the internet giant has faced unprecedented headwinds as Beijing imposed tighter restrictions on the domestic tech industry. Combined revenue at China’s internet companies shrank by just over one percent to 1.46 trillion yuan ($212 billion) in 2022, the first contraction in almost a decade, according to data from the Ministry of Industry and Information Technology.
Alibaba founder Jack Ma has kept a low profile since late 2020, when a speech attacking Chinese regulators was followed by Beijing pulling the plug on Ant Group’s planned IPO. Although Ma has been spotted around the world over the past two years, he made a rare public appearance in China on Monday after his fall from grace.
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